Hillary Rodham Clinton yesterday dropped her neutral stance on the recent violence between Israelis and Palestinians – and demanded that Yasser Arafat act to halt the bloodshed.

Clinton’s comments were a turnaround from the day before, when she declined to cast blame on either side – and disappointed some of her Jewish backers by sounding more like a diplomatic first lady than a pro-Israel candidate for Senate.

Her remarks also come after her opponent Rick Lazio on Monday beat her to the punch, coming out strongly against Arafat and charging that the Palestinians were responsible for the unrest.

“It is incumbent upon Chairman Arafat to do everything in his power to stop the violence and to maintain the cease-fire that was reached yesterday,” Clinton told reporters.

“I would urge Chairman Arafat in the strongest possible terms to take whatever action he possibly can as quickly as he can.”

Clinton also praised Israel for its handling of the fighting that has left more than 50 dead, saying, “The Israelis have tried to respond and contain it.”

Lazio ratcheted up his second day of comments on the Middle East, urging that the United States cut off aid if the Palestinian Authority doesn’t contain the violence.

“America is not going to finance the Palestinian Authority if it resorts to violence and if that leads to the breakdown of the possibility of a peace accord,” Lazio said after speaking to a class at a high school in East Islip, L.I.

Meanwhile, the Lazio campaign announced that Lazio’s wife, Patricia, and New York state First Lady Libby Pataki today will hit the campaign trail upstate to promote “breast cancer awareness” – but their tour is obviously geared toward boosting the GOP hopeful’s standing with women.

Mrs. Lazio and Mrs. Pataki will appear in Buffalo, Rochester and Syracuse and tomorrow will borrow Lazio’s “Mainstream Express” bus to stump in the New York City area.

Mrs. Lazio has little experience on the campaign trail, but Mrs. Pataki has had her share of run-ins with Clinton.

Mrs. Pataki took a swipe at Clinton last year, saying of the first lady, “I am happy every day that I wake up and I don’t walk in her shoes.”

In Buffalo, Clinton also said she is adding “dozens” of fund-raisers to her schedule to make up for her agreed-to ban on soft money.

The first lady tonight will attend a forum sponsored by the League of Conservation Voters, which Lazio will miss – a move that is likely to cost him the environmental group’s endorsement.